On July 15, 2021, the Nixon Car Company purchased 2,200 tires from the Harwell Company for $45 each. The terms of the sale were 2/10, n/30. Nixon uses a perpetual inventory system and the gross method of accounting for purchase discounts.

Explanation:

The journal entries are shown below:

On July 15:

Purchase A/c Dr $97,020

      To Accounts payable $97,020

(By buying goods on credit with discount), the following are shown in the estimates of tire sales following application of the discount:

= Number of tires × price per tire - discount rate

= 2,200 tires × $45 - 2%

= $99,000 - $1,980

= $97,020

On July 23:

Account payable A/c Dr $97,020

    To Cash A/c                                  $97,020

(Being payment is made)

On August 15:

Account payable A/c Dr $97,020

Interest expense A/c Dr $1,980

    To Cash A/c                                  $99,000

(Being payment is made on late interval)

hello the answer is d

answerpurchase-occasion segmentation;